| 38 | 64 | | |
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| 39 | 65 | | An Act relating to public buildings and public works; |
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| 40 | 66 | | amending 61 O.S. 2021, Section 103, as amended by |
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| 41 | 67 | | Section 23, Chapter 228, O.S.L. 202 2 (61 O.S. Supp. |
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| 42 | 68 | | 2022, Section 103), which relates to competitive |
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| 43 | 69 | | bidding; designating exemption ; and providing an |
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| 44 | 70 | | effective date. |
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| 45 | 71 | | |
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| 46 | 72 | | |
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| 47 | 73 | | |
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| 48 | 74 | | |
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| 49 | 75 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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| 50 | 76 | | SECTION 1. AMENDATORY 61 O.S. 2021, Section 103, as |
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| 51 | 77 | | amended by Section 23, Chapter 228, O.S.L. 2022 (61 O.S. Supp. 2022, |
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| 52 | 78 | | Section 103), is amended to read as follows: |
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| 53 | 79 | | Section 103. A. Unless otherwise prov ided by law, all public |
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| 54 | 80 | | construction contracts exceeding One Hundred Thousand Dollar s |
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| 55 | 81 | | ($100,000.00) or constru ction management trade contracts or |
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| 56 | 82 | | subcontracts exceeding Fifty Thousand Dollars ($50,000.00) shall be |
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| 57 | 83 | | let and awarded to the lowest responsible bidder, by open |
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| 58 | 84 | | competitive bidding after solicitation for sealed bids, in |
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| 59 | 85 | | accordance with the provisions of t he Public Competitive Bidding Act |
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| 60 | 86 | | of 1974. No work shall be commenced until a wr itten contract is |
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| 90 | 140 | | B. Notwithstanding subsection A of this s ection, in awarding |
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| 91 | 141 | | public construction contracts exceed ing One Hundred Thousand D ollars |
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| 92 | 142 | | ($100,000.00) or construction management trade contracts o r |
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| 93 | 143 | | subcontracts exceeding Fifty Thousand Dollars ($50,000.00), |
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| 94 | 144 | | counties, cities, othe r local units of governme nt and any public |
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| 95 | 145 | | trust with a county or a municipality as its sole beneficiary ma y |
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| 96 | 146 | | provide for a local bid preference of not more than five percen t |
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| 97 | 147 | | (5%) of the bid price if the awarding public agency determines that |
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| 98 | 148 | | there is an economic benefit to the loc al area or economy. |
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| 99 | 149 | | Provided, however, the local bidder or contractor must agree to |
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| 100 | 150 | | perform the contract for the same price and terms as the bid |
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| 101 | 151 | | proposed by the nonlocal bidder or contractor. Any bid preference |
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| 102 | 152 | | granted hereunder must be in accordance wit h an established polic y |
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| 103 | 153 | | adopted by the governing body of the awarding public agenc y to |
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| 104 | 154 | | clearly demonstrate the economic benefit to the local area o r |
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| 105 | 155 | | economy. Provided, further, no local bid preference shall be |
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| 106 | 156 | | granted unless the l ocal bidding entity is th e second lowest |
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| 107 | 157 | | qualified bid on the contract. The bid specifications shall clear ly |
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| 108 | 158 | | state that the bid is subject to a local bidder preference law . For |
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| 109 | 159 | | purposes of this section, “local bid” means the bidding person is |
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| 110 | 160 | | authorized to transact business in t his state and maintain s a bona |
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| 111 | 161 | | fide establishment for tr ansacting such business wi thin this state. |
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| 140 | 214 | | federal funds are available for expenditure when its provision s may |
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| 141 | 215 | | be in conflict with federal law or regula tion. |
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| 142 | 216 | | C. Except as provided in su bsection E of this section , other |
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| 143 | 217 | | construction contracts for the purpose of making any publ ic |
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| 144 | 218 | | improvements or constructing any public building or making repairs |
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| 145 | 219 | | to the same for One Hundred Thousand D ollars ($100,000.00) or less |
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| 146 | 220 | | shall be let and awarded to the lowest responsible bid der by receipt |
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| 147 | 221 | | of written bids or awarded on the basis of competi tive quotes to the |
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| 148 | 222 | | lowest responsible qualified contractor. Work may be commenced i n |
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| 149 | 223 | | accordance with the pu rchasing policies of t he public agency. |
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| 150 | 224 | | D. Except as provided in subsection E of t his section, other |
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| 151 | 225 | | construction contracts for less tha n Ten Thousand Dollars |
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| 152 | 226 | | ($10,000.00) may be negotiated with a qualified contractor . Work |
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| 153 | 227 | | may be commenced in accordanc e with the purchasing policies of the |
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| 154 | 228 | | public agency. |
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| 155 | 229 | | E. The provisions of this subs ection shall apply to public |
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| 156 | 230 | | construction for minor maintenance o r minor repair work to pu blic |
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| 157 | 231 | | school district property. Other construction contract s for less |
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| 158 | 232 | | than Twenty-five Thousand Dollars ($25,000.00) may be negotiated |
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| 159 | 233 | | with a qualified contractor . Construction contracts equal to or |
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| 160 | 234 | | greater than Fifty Thousand Dollars ($50,000.00) but less than One |
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| 161 | 235 | | Hundred Thousand Dollars ($100,000.00) shall be let and awarded to |
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| 162 | 236 | | the lowest responsible bi dder by receipt of written bids. No work |
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| 191 | 289 | | contract is executed a nd proof of insurance has been provided by the |
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| 192 | 290 | | contractor to the awarding public age ncy. |
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| 193 | 291 | | F. The Construction and Properties Di vision of the Office of |
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| 194 | 292 | | Management and Enterprise Services may a ward contracts using best |
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| 195 | 293 | | value competitive proposals . As used in this subsection, “best |
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| 196 | 294 | | value” means an optional contract award system which can ev aluate |
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| 197 | 295 | | and rank submitted competitive perfo rmance proposals to identify the |
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| 198 | 296 | | proposal with the greatest valu e to the state. The Office of |
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| 199 | 297 | | Management and Enterprise Services , pursuant to the Adminis trative |
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| 200 | 298 | | Procedures Act, shall promulgate rules necessary to implement the |
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| 201 | 299 | | provisions of this subsectio n. |
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| 202 | 300 | | G. 1. A public agency shall not l et or award a public |
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| 203 | 301 | | construction contract exce eding One Hundred Thousand Dollars |
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| 204 | 302 | | ($100,000.00) or a construction ma nagement trade contract or |
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| 205 | 303 | | subcontract exceeding Fifty Thousand Dollars ($50,00 0.00) to any |
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| 206 | 304 | | contractor affiliated with a purchasing cooperative unless the |
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| 207 | 305 | | purchasing cooperative and the c ontractor have complied with all of |
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| 208 | 306 | | the provisions of the Public Competitive Bidding Act of 1974, |
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| 209 | 307 | | including but not limited to o pen competitive bidd ing after |
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| 210 | 308 | | solicitation for sealed bids. A public agency shal l not let or |
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| 211 | 309 | | award a public construction contra ct exceeding Ten Thousand Dollars |
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| 212 | 310 | | ($10,000.00) up to One Hundred Thousand Dollars ($100,000.00) to any |
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| 213 | 311 | | contractor affiliated wit h a purchasing coope rative unless the |
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| 242 | 364 | | the provisions of the Public Competitive Bidding Act of 1974, |
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| 243 | 365 | | including submission of a wri tten bid upon notice of competitive |
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| 244 | 366 | | bidding. |
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| 245 | 367 | | 2. A purchasing cooperative and its affiliated contrac tors |
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| 246 | 368 | | shall not be allowed to bid on any public construction contra ct |
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| 247 | 369 | | exceeding One Hundred Thousand Dollars ($100,000.00) or any |
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| 248 | 370 | | construction management tra de contract or subcontract exceeding |
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| 249 | 371 | | Fifty Thousand Dollars ($50,000.00) unless the purchasing |
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| 250 | 372 | | cooperative and its affil iated contractors ha ve complied with all of |
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| 251 | 373 | | the provisions of the P ublic Competitive Bidding Act of 1974, |
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| 252 | 374 | | including but not limited to o pen competitive bidding after |
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| 253 | 375 | | solicitation for sealed bids . A purchasing cooperative and its |
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| 254 | 376 | | affiliated contractors sha ll not be allowed to bid on any public |
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| 255 | 377 | | construction contract exceed ing Five Thousand Dollars ($5,000.00) |
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| 256 | 378 | | unless the purchasing cooperati ve and its affiliated contractors |
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| 257 | 379 | | have complied with all of the provisions of the Public Competitive |
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| 258 | 380 | | Bidding Act of 1974, including submissi on of a written bid upon |
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| 259 | 381 | | notice of open competi tive bidding. |
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| 260 | 382 | | 3. Local governmental units, or local governmental uni ts |
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| 261 | 383 | | cooperating under the terms of any inter local cooperative agreement |
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| 262 | 384 | | authorized by state law, may create a purchasing cooperative or |
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| 263 | 385 | | contract with a purchasing coop erative to provide le verage in |
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| 264 | 386 | | achieving best value or the best t erms in contracts. To en courage |
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| 293 | 439 | | interlocal cooperative e ntity may utilize any sin gle legal newspaper |
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| 294 | 440 | | of this state to serve as sufficient compliance for bid notice |
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| 295 | 441 | | requirements of competitive bidding or solicitation o f bids. If the |
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| 296 | 442 | | purchasing cooperative or i nterlocal cooperative entity is engaging |
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| 297 | 443 | | in a project exclusive to a county o r group of counties of this |
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| 298 | 444 | | state, and not open to all governmental units or public trusts that |
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| 299 | 445 | | wish to participate statewide, the bid n otice shall be published in |
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| 300 | 446 | | a legal newspaper located within the county or group of counties. |
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| 301 | 447 | | Any local governmental un it or public trust tha t enters into |
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| 302 | 448 | | membership or contracts with a purchasing cooperative or interlocal |
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| 303 | 449 | | cooperative entity may enter int o purchases or contracts under the |
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| 304 | 450 | | terms negotiated by the purchasing cooperative or interlocal |
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| 305 | 451 | | cooperative entity. If the purchasing coopera tive or interlocal |
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| 306 | 452 | | cooperative entity complie s with the requirements of this section of |
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| 307 | 453 | | law, all local governmenta l units shall be deemed in compliance with |
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| 308 | 454 | | the requirements set forth for bid notices and publi cation. |
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| 309 | 455 | | H. The provisions of the Public Competitive Bidding Act of 1974 |
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| 310 | 456 | | shall not apply to a monetary donation made to a municipality for a |
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| 311 | 457 | | specific public purpose whic h has been approved by the municipal |
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| 312 | 458 | | government. |
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| 313 | 459 | | SECTION 2. This act shall become effective November 1, 2023. |
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